An entrepreneur is defined as someone who establishes a new business venture and takes on the risks associated with it in order to make a profit. There are several theories that attempt to explain entrepreneurship, including sociological, economic, cultural, psychological, and motivation theories. Sociological theory examines how social and cultural values influence entrepreneurship. Economic theory views entrepreneurs as agents who act to coordinate scarce resources. Cultural theory studies entrepreneurs as sources of innovation and new ideas. Psychological and motivation theories explore personality traits and internal drives like achievement motivation that compel individuals towards entrepreneurial pursuits.

1. What is an entrepreneur?
The entrepreneur is defined as someone who has the ability and desire to establish,
administer and succeed in a startup venture along with risk entitled to it, to make
profits.
The best example of entrepreneurship is the starting of a new business venture.
The entrepreneurs are often known as a source of new ideas or innovators, and
bring new ideas in the market by replacing old with a new invention.
It can be classified into small or home business to multinational companies. In
economics, the profits that an entrepreneur makes is with a combination of land,
natural resources, labour and capital.
In a nutshell, anyone who has the will and determination to start a new company
and deals with all the risks that go with it can become an Entrepreneur.

2. Theories of entrepreneurial
 Sociological theory
 Economic theory
 Cultural theory
 Entrepreneurship innovation theory
 Physcological theory
 Theory of achievement motivation
 Motivation theory by McClelland

3.  Given by Mark Casson in his book The Entrepreneur—An Economic
 Theory
 Demand for entrepreneurship arise from the need to change and the
 supply of entrepreneurship is limited.
 Four Qualities of Entrepreneur
 1. Judgmental decisions.
 2. Co-ordination of Scarce resources.
 3. Motivated by Self Inter
 4. Imagination—entirely innate.
Economic economic theory

4. Sociological theory
 It was Max Weber who first of all took the stand that entrepreneurial growth was
dependent upon ethical value system of the society concerned. The central figure of the
Weber’s theory of social change consists in his treatment of the protestant ethic and the
spirit of capitalism. Moreover, this theory provides an analysis of religion and its impact on
entrepreneurial culture.

 Max Weber opined that the spirit of rapid industrial growth depends upon a rationalised
technology, acquisition of money and its rational use for productivity and multiplication of
money. These elements of industrial growth depend upon a specific value orientation of
individuals i.e. The tendency of acquisition and rational attitude towards action which are
generated by ethical values.

 Weber analysed his theoretical formulation by the relationship that he found between
protestant ethic and the spirit of capitalism.

5. Cultural theory
 Cultural Entrepreneurship is studied by management, business, cultural
studies, cultural economy, sociology, and anthropology scholars.
Regardless of the discipline, entrepreneurship theory is the common
denominator for the provided definitions. For instance, characteristics of
general entrepreneurship theory such as exploration, assessment, and
harnessing of an entrepreneurial opportunity; innovation both perceived
as novel ideas, ways of doing, and the ability to bring innovation into the
market; and the creation of an organization. Under the same theoretical
framework, scholars do also investigate the virtues of the cultural
entrepreneur and the motivation behind launching his/her entrepreneurial
journey. In a true Schumpeterian perspective, this includes the capacity to
manage resources, the organizational power, the talent of persuasion, the
strength of their collaborative ways of working; the visionary vision, risk-
taking and adventures traits, knowledge and sensitiveness to the artistic
process, the capability of interpreting, transforming and transmitting new
goods and products without undermining their cultural and creative
intrinsic value.

6. Entrepreneurship innovation theory
 What makes entrepreneurs different from normal businessmen is finding
innovative solutions and having foresight. Joseph Alois Schumpeter, one of
the greatest economists, put forth the well-known innovative theory
which changed the entrepreneur’s perspective. According to Schumpeter,
entrepreneurs take the stationary economy to a new level of development
by adding innovation and creativity of their own. Schumpeter also stated
that entrepreneurs bring innovation in two ways namely:

 By reducing the cost of production
 By increasing the demand for certain product

7. Physiological theory
 T entrepreneurship is termed as psychological concept and process. According to this theory,
psychological factors are the primary source of entrepreneurship development. Few authors
like Schumpeter, McClelland, Hagen and John Kunkell have expressed their opinion about
psychological factors affecting entrepreneurship.

 According to this theory, an entrepreneurship is important to emerge when the society has
sufficient supply of individuals possessing particular psychological elements.

 The main psychological theories are as follows:

 (i) Joseph A. Schumpeter Theory

 (ii) David C. McClelland Theory

 (iii) Everret E. Hagen’s Theory

 (iv) John Kunkell Theory

8. Theory of achievement motivation
 Achievement motivation can be defined as the ability of
the individual to work toward their highest
performance level. The individual is driven by success,
and that individual thrives off of feedback from that
work. It is important to note that if a person is driven
by achievement, the person is likely to take on tasks
where they are not too hard, nor too easy. In situations
where an individual can be led by achievement
motivation, that individual fears failure.

9. Motivation theory by mccllend
 This theory takes into account psychological factors that impact economic
behaviour. According to David Mccleland, entrepreneurial activity is
characterized by innate needs that eventually determine the extent to which
an individual will engage in entrepreneurship. These needs are the need for
achievement, the need for power and the need for affiliation. Individuals who
are highly motivated and have a need for achieving challenging goals are
usually more interested in entrepreneurship tasks as compared to those who
have a low or moderate need for motivation. Individuals who wish to exercise
control over others and acquire power are also more likely to be
entrepreneurs. People who desire to socially affiliate with others and gain
social acceptance and acknowledgement are also likely to become
entrepreneurs in the future

10. Technia Institute of advance studies
Presentation on Enterpurneurship
theories
Cousre-: Enterpurneurship mindset
Subject come:103
Submitted to-: dr rubeena
banno(lecturer)
Submitted by-:Prerna
Bba 1st semester
2nd shift
Section-B